Authorizing a payment transaction using seasoned data

ABSTRACT

A system, apparatus, and method for expediting the authorization of an electronic payment transaction. Authorization of a transaction at a node of an authorization network is the result of inferring the trustworthiness of a customer to the transaction using data obtained from a different node of the authorization network. The authorization process is expedited by relying on the previous authentication decision of another node, where the previous decision may have been made based on a different payment device or different user inputs. The invention uses a decision made by a first node in the authorization network as a proxy for the authorization decision at a different node, thereby transferring the trustworthiness of a consumer, consumer&#39;s device, payment device, or other aspect of the transaction from the first node to the second.

CROSS-REFERENCES TO RELATED APPLICATIONS

This application is continuation application of U.S. patent applicationSer. No. 12/507,745, filed Jul. 22, 2009, entitled “Apparatus IncludingData Bearing Medium for Authorizing a Payment Transaction Using SeasonedData”, which is herein incorporated by reference in its entirety for allpurposes. The following patent applications are incorporated byreference in their entirety: U.S. patent application Ser. No.12/507,750, now U.S. Pat. No. 9,396,465, entitled “An ApparatusIncluding Data Bearing Medium for Reducing Fraud in Payment TransactionsUsing a Blacklist” and U.S. patent application Ser. No. 12/507,757, nowabandoned, entitled “An Apparatus Including Data Bearing Medium forSeasoning a Device Using Data Obtained From Multiple TransactionEnvironments” each filed on Jul. 22, 2009.

BACKGROUND

Embodiments of the present invention are directed to systems,apparatuses and methods for enabling electronic payments and theprocessing of payment transaction data, and more specifically, to theauthorization of a transaction based on the reputation of a node in thepayment network or based on payment device, consumer data, or otherinformation collected as part of a previous transaction. The inventiveapparatus and associated systems and methods may be used to expedite theauthorization of a transaction by associating the payment device,account or individual involved in a transaction with a previouslyauthorized transaction, or with a merchant or other participant to thetransaction that has previously determined that the payment device,account or individual is a reliable party to a transaction.

Consumer payment devices such as debit cards or credit cards are used bymillions of people worldwide to facilitate various types of commercialtransactions. In a typical transaction involving the purchase of aproduct or service at a merchant location, the payment device ispresented at a point of sale terminal (“POS terminal”) located at amerchant's place of business. The POS terminal may be a card reader orsimilar device that is capable of reading or accessing data stored onthe payment device, where this data may include identification orauthentication data, for example. Some or all of the data read from thepayment device is provided to the merchant's transaction processingsystem and then to the Acquirer, which is typically a bank or otherinstitution that manages the merchant's account. The data provided tothe Acquirer may then be provided to a payment processing network whichprocesses the data to determine if the transaction should be authorizedby the payment processor, and assists in the clearance and accountsettlement aspects of the transaction. The authorization decision andclearance and settlement portions of the overall transaction may alsoinvolve communication and/or data transfer between the paymentprocessing network and the bank or institution that issued the paymentdevice (the Issuer). Transactions in which a consumer payment device ispresented to a merchant or accessed by a point of sale terminal aretermed “card present” transactions since the payment device is in thesame physical location as the merchant or terminal.

A transaction involving the purchase of a product or service may also beinitiated by a consumer by providing payment data from a remote locationto a merchant over a network such as the Internet, typically using acomputing device such as a personal computer or laptop computer (termeda “card not present” transaction). Transactions may also be initiated byusing a mobile device such as a cell phone or PDA that communicates witha merchant or service provider directly or indirectly over a wirelessnetwork (which may be configured to enable data transfer between thewireless network and the Internet). Thus, payment information for atransaction may be provided using a payment device and point of saleterminal, remotely located computing device, or mobile device capable ofwireless communications, among other methods.

Each element or participating node in the authorization process for atransaction may have its own information about the user. For example, amerchant may have records of the consumer's transaction history withthat merchant, while the payment processor or Issuer may have access toidentification data for the payment device being utilized, theconsumer's account status, the consumer's overall transaction history,or consumer identification or security data. Further, each participantin the authorization process will typically have its own criteria fordetermining if authorization of the transaction is warranted at thatstage in the overall authorization process.

Some of the data, such as the consumer data, payment device data, orpoint of sale terminal or consumer computing device data is typicallynot shared between the elements or nodes of the transactionauthorization network. As a result, transactions initiated by the sameconsumer using different computing devices or by the same consumer withdifferent merchants require the same authorization process, even thoughthe consumer may have demonstrated that they are reliable when theirentire payment and transaction history is considered. This delaysacceptance of a consumer, consumer's account, or consumer's device as areliable party to a transaction by the elements of the transactionauthorization network, where more rapid acceptance would decrease thedata processing and time required for transaction authorization. It mayalso prevent a merchant from accepting a transaction from a consumerthat the merchant is familiar with and finds reliable, even thoughanother node of the authorization network might decline to accept thetransaction.

In an E-commerce environment in which a credit card or debit card istypically not presented to a merchant, authorization of a transactioninitiated using a consumer device may be contingent on the device or theaccount being used for the transaction having a sufficient history ofbeing used for successful transactions (i.e., not fraudulent orquestionable transactions). In the absence of a sufficient transactionhistory, the consumer may be denied authorization for a transactioninitiated using a new device (such as a new computer or mobile phone) oraccount, or issued a challenge message that they must respond to inorder for the authentication process to continue. In addition to thedata processing burden this places on the payment network, this canfrustrate a consumer and have a negative impact on their use of thepayment network for future transactions.

What is desired is a system, apparatus and method for expediting theauthorization process for electronic payment transactions. Embodimentsof the invention address these problems and other problems individuallyand collectively.

SUMMARY

Embodiments of the present invention are directed to a system,apparatus, and method for expediting the authorization of an electronicpayment transaction. In some embodiments, the invention is directed toan apparatus that executes a method of authorizing a transaction at anode of the authorization network by inferring the trustworthiness of acustomer to a transaction (the consumer) using data obtained from adifferent node of the authorization network. In this example, theauthorization process is expedited by relying on the previousauthentication decision of another node, where the previous decision mayhave been made based on a different payment device or different userinputs. Thus, in some embodiments, the invention is directed to using adecision made by a first node in the authorization network as a proxyfor the authorization decision at a different node, thereby transferringthe trustworthiness of a consumer (or an account associated with theconsumer), consumer's device, payment device, or other aspect of thetransaction from the first node to the second. This enables anauthorization decision to be made at an earlier stage of the overallauthorization process, or with less data processing or computationalresources than might otherwise be required.

For example, expedited authorization for a transaction might eliminatethe necessity to send a challenge or data inquiry to a consumer in asituation in which there has been a change in consumer or payment devicedata that would normally have prevented authorization of a transaction.Use of data collected or authorization decisions made at other nodes ofthe authorization network may also enable an account, device or user tobe categorized as “seasoned” based on fewer contacts with a merchant,where “seasoning” refers to the concept of being accepted as a reliableand trustworthy party to a transaction.

In one embodiment, the present invention is directed to an apparatus foruse in authorizing an electronic payment transaction for a consumer,where the apparatus includes a processor configured to execute a set ofinstructions, a memory coupled to the processor for storing the set ofinstructions, and the set of instructions stored in the memory, whereinwhen executed by the processor the instructions implement a method toreceive a plurality of authorization messages, wherein eachauthorization message includes data regarding a consumer device used inan electronic payment transaction, process the authorization messages todetermine if the consumer device should be considered seasoned, and ifthe consumer device should be considered seasoned, then provideconfirmation of the device being reliable to a node of an authorizationnetwork as part of a subsequent transaction.

In another embodiment, the present invention is directed to a method ofauthorizing an electronic payment transaction for a consumer, where themethod includes receiving transaction data at a payment processing nodeof an authorization network, determining whether the transaction waspreviously authorized by a trusted node of the authorization network,and if it is determined that the transaction was previously authorizedby a trusted node of the authorization network, then authorizing thetransaction at the payment processing node of the authorization network.

In another embodiment, the present invention is directed to a method ofseasoning a consumer, consumer account, or consumer device that is partof an electronic payment transaction, where the method includesreceiving transaction data at a payment processing node of anauthorization network, processing the transaction data to determinewhether the consumer, consumer account, or consumer device wasconsidered seasoned by a trusted node of the authorization network, andif it is determined that the consumer, consumer account, or consumerdevice was considered seasoned by a trusted node of the authorizationnetwork, then identifying the consumer, consumer account, or consumerdevice as seasoned at the payment processing node.

In yet another embodiment, the present invention is directed to a methodof authorizing an electronic payment transaction, where the methodincludes receiving a plurality of authorization messages, wherein eachauthorization message includes data regarding a consumer device used inan electronic payment transaction, processing the authorization messagesto determine if the consumer device should be considered seasoned, andif the consumer device should be considered seasoned, then providingconfirmation of the device being reliable to a node of an authorizationnetwork as part of a subsequent transaction.

Other objects and advantages of the present invention will be apparentto one of ordinary skill in the art upon review of the detaileddescription of the present invention and the included figures.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a functional block diagram illustrating the primary functionalelements of an exemplary system for authorizing an electronic paymenttransaction;

FIG. 2 is a flowchart illustrating a method for expediting theauthorization of a transaction by using a trusted node, in accordancewith some embodiments of the present invention;

FIG. 3 is a flowchart illustrating a method for expediting the seasoningof a consumer device or account by using a trusted node, in accordancewith some embodiments of the present invention;

FIGS. 4a and 4b are flowcharts illustrating a method for expediting theauthorization of a transaction by a merchant by determining if aconsumer, account, or device has previously been identified as seasonedby another merchant or should be considered seasoned based on theprocessing of multiple authorization messages, in accordance with someembodiments of the present invention; and

FIG. 5 is a block diagram of elements that may be present in a computerdevice or system configured to execute a method or process forexpediting the authorization of a payment transaction in accordance withsome embodiments of the invention.

DETAILED DESCRIPTION

Before proceeding to describe one or more embodiments of the presentinvention, and to assist with providing a better understanding of theinvention, it may be useful to define some terms that will be used indescribing the inventive system and method. In the context of thepresent invention:

A “consumer” is a customer to a transaction, or user of a payment deviceor device into which payment data may be entered and provided to amerchant as part of a transaction.

A “payment device” is a credit card, debit card, or other device orelement from which payment data may be read or otherwise communicated.

A “consumer device” is a device into which a consumer enters payment oraccount data, with that data being communicated to a merchant as part ofa transaction. Example consumer devices include, but are not limited to,home or business computers, mobile phones, PDAs, laptop computers, andthe like.

“Seasoning” refers to a process of determining that transactionsassociated with a particular consumer, account, consumer device, etc.may be taken to be sufficiently trustworthy to authenticate futuretransactions associated with that consumer, account, or consumer devicewithout the normal authentication process, or without issuing achallenge or other request for approval in a situation in which achallenge would normally be issued. Seasoning expedites theauthentication process, and indicates a preferred or reliable status forthe consumer, account or consumer device. In practice, a seasonedaccount might be approved for a transaction in a situation in which anissuing bank declined the transaction, or be eligible for discounts orother special treatment.

A “challenge” is a message or other form of communication in whichadditional information or an action is requested from a consumer as apre-condition to authorizing a transaction. A payment processor mayissue a challenge in situations in which a consumer has initiated atransaction using a new consumer device, payment method or account for atransaction, where the device, method, or account has not previouslybeen “seasoned”.

A “trusted node” is a node or element of the transaction authorizationnetwork that is relied upon to vouch for the trustworthiness of aconsumer, consumer account, or consumer device.

Embodiments of the present invention are directed to a system,apparatus, and method for expediting all or part of the authorizationprocess involved in an electronic payment transaction. Among other uses,the invention may be used to authorize a transaction in a situation inwhich it might not otherwise be approved, or to identify an account orconsumer device as “seasoned” in a situation in which the account ordevice would normally require a larger number of transactions to beconsidered reliable.

Prior to describing one or more embodiments of the invention in greaterdetail, a brief discussion of the entities involved in authorizing anelectronic payment transaction and their roles in the authorizationprocess will be presented with regards to FIG. 1, which is a functionalblock diagram illustrating the primary functional elements of anexemplary system 100 for authorizing an electronic payment transaction.As shown in FIG. 1, in a typical transaction, a consumer wishing topurchase a good or service from a merchant provides payment transactiondata that may be used as part of an authorization process by means of adevice 102. The consumer may utilize a payment device such as a cardhaving a magnetic strip encoded with account data or other relevant data(e.g., a standard credit or debit card) to initiate the transaction. Inan E-commerce transaction, the consumer may enter data into a consumerdevice capable of communicating with a merchant or other element ofsystem 100, such as a laptop or personal computer. The consumer may alsoinitiate the transaction using data stored in and provided from asuitable form of data storage device (such as a smart card, mobilephone, PDA, or transportable memory device). As examples, a card orsimilar payment device may be presented to a point of sale terminal 102a which scans or reads data from that card. Similarly, a consumer mayenter payment account data into a computing device 102 b, as part of anE-commerce transaction. Further, a consumer may enter payment accountdata into a cell phone or other wireless device 102 c and have that datacommunicated to the transaction authorization network by the device (orhave previously entered and stored data that is accessed and provided tothe network as part of the transaction).

The payment account data (as well as any required consumer data) iscommunicated over a communication network 106 to the merchant andultimately to the merchant's transaction processing system 108. The datamay be provided to communication network 106 by any method or elementssuitable for use with device 102. For example, if device 102 is a pointof sale terminal 102 a, then the data may be provided by a wirelinephone connection or suitable form of connection to the Internet 104 a.If device 102 is a consumer's computing device 102 b, then the data maybe provided by a connection to the Internet 104 b, such as a cable modemor wireless router. If device 102 is a cell phone or other wirelessdevice 102 c, then the data may be provided by a wireless network 104 cto communication network 106. Depending on the merchant or transactioninvolved, communication network 106 may be the Internet, a closednetwork such as a corporate network, a wireless network, or othersuitable form of data transport channel.

As part of the authorization process performed by the merchant, merchanttransaction processing system 108 may access merchant database 110,which typically stores data regarding the customer/consumer (as theresult of a registration process with the merchant, for example), theconsumer's payment device, and the consumer's transaction history withthe merchant. Merchant transaction processing system 108 typicallycommunicates with Merchant Acquirer 112 (which manages the merchant'saccounts) as part of the overall authorization process. Merchanttransaction processing system 108 and/or Merchant Acquirer 112 providedata to Payment Processing Network 116, which among other functions,participates in the clearance and settlement processes which are part ofthe overall transaction processing. Communication and data transferbetween Merchant transaction processing system 108 and PaymentProcessing Network 116 may be by means of a direct connection 114 or bymeans of an intermediary, such as Merchant Acquirer 112. As part of thetransaction authorization process, Payment Processing Network 116 mayaccess account database 118, which typically contains informationregarding the consumer's account payment history, chargeback or disputehistory, credit worthiness, etc. Payment Processing Network 116communicates with Issuer 120 as part of the authorization process, whereIssuer 120 is the entity that issued the payment device (or providedanother form of data to enable a consumer to pay for goods or services)to the consumer and manages the consumer's account. Customer or consumeraccount data is typically stored in customer/consumer database 122 whichis accessed by Issuer 120 as part of the authorization and accountmanagement processes.

In standard operation, an authorization request message is createdduring or after a consumer purchase of a good or service at a point ofsale (POS). The point of sale may be a merchant's physical location or avirtual point of sale such as a web-site that is part of an E-commercetransaction. In a typical transaction, the authorization request messageis sent from the point of sale to the merchant's Acquirer 112, to aPayment Processing Network 116, and then to an Issuer 120. An“authorization request message” can include a request for authorizationto conduct an electronic payment transaction. It may include one or moreof an account holder's payment account number, currency code, saleamount, merchant transaction stamp, acceptor city, acceptorstate/country, etc. An authorization request message may be protectedusing a secure encryption method (e.g., 128-bit SSL or equivalent) inorder to prevent data from being compromised. In a typical transactionauthorization process, an authorization request message is communicatedbetween nodes as indicated by arrow 124 in FIG. 1, while anauthorization response (i.e., an approval or denial by an issuer orpayment processing network) is communicated between nodes as indicatedby arrow 126 in FIG. 1.

Payment Processing Network 116 may include data processing subsystems,networks, and other means of implementing operations used to support anddeliver authorization services, exception file services, and clearingand settlement services for payment transactions. An exemplary PaymentProcessing Network may include VisaNet™. Payment Processing Networkssuch as VisaNet™ are able to process credit card transactions, debitcard transactions, and other types of commercial transactions. VisaNet™,in particular, includes a VIP system (Visa Integrated Payments system)which processes authorization requests and a Base II system whichperforms clearing and settlement services.

Payment Processing Network 116 may include a server computer. A servercomputer is typically a powerful computer or cluster of computers. Forexample, the server computer can be a large mainframe, a minicomputercluster, or a group of servers functioning as a unit. In one example,the server computer may be a database server coupled to a web server.Payment Processing Network 116 may use any suitable wired or wirelessnetwork, including the Internet to permit communication and datatransfer between network elements. Among other functions, PaymentProcessing Network 116 may be responsible for ensuring that a user isauthorized to conduct the transaction (via an authentication process),confirm the identity of a party to a transaction (via receipt of apersonal identification number), confirm a sufficient balance or creditline to permit a purchase, and reconcile the amount of purchase with theuser's account (via entering a record of the transaction amount, date,etc.).

As depicted in FIG. 1, the authorization of a transaction typicallyinvolves decisions made at multiple nodes or elements of the overallauthorization or transaction processing network. These nodes include,but are not limited to, the merchant, the merchant's Acquirer, thepayment processor, and the Issuer. Each node may have access to its owndata regarding the consumer, the payment device, the consumer'stransaction history with a merchant or set of merchants, the consumer'spayment history, and fraudulent activities concerning the consumer'saccount or device, with this data typically not exchanged between nodes.Further, each node will typically have its own rules or guidelines fordeciding if a particular transaction should be authorized, based on thetransaction data and the node's own data and decision making rules.

As an example, a merchant may consider the following data and criteriawhen deciding whether to approve or deny a transaction with acustomer/consumer:

-   -   Verification of card or payment device data, such as account        format, expiration date, service code, security code, etc.    -   Registration or previous relationship of the customer with the        merchant, such as:        -   Previous approved transactions with this customer or their            account;        -   Customer is in merchant database and does not hold a            significant record of chargeback's or other forms of            non-payment on charged amounts;        -   Customer has purchased from same physical address in the            past, and/or had merchandise shipped to the same physical            address in the past; or        -   Customer has purchased from same origination device in the            past (e.g., same internet IP, cell phone ID number, etc.).

Similarly, an Acquirer may consider the following data and criteria whendeciding whether to approve or deny a transaction with acustomer/consumer:

-   -   Is the account on a list of lost/stolen payment devices?    -   Is the account in a recognized account number range or from a        recognized issuer?    -   Is the merchant who is part of the transaction recognized by the        acquirer and in good standing?

The payment processing network may consider the following data andcriteria when deciding whether to approve or deny a transaction with acustomer/consumer:

-   -   Is the account on a list of lost/stolen payment devices?    -   Does the proposed transaction meet acceptable guidelines for        amount, location, type of product, history of purchases on this        account?    -   Does the transaction pass a validation test for cryptogram and        other verification checks, such as zip code?

In addition, the Issuer may consider the following data and criteriawhen deciding whether to approve or deny a transaction with acustomer/consumer:

-   -   Is the account on a list of lost/stolen payment devices?    -   Does the proposed transaction meet acceptable guidelines for        amount, location, type of product, history of purchases made by        this customer?    -   Does the transaction pass a validation test for cryptogram and        other verification checks such as name, address, or zip code?    -   Does the history of this cardholder for making timely payments        support authorization of this transaction?    -   Are there sufficient funds available in the account, including        debit and prepaid account fund levels for this transaction?

As suggested by the description of the data used by each node to make adecision whether to authorize or deny a transaction, each node may havedifferent information about an account or customer, as well as differentcriteria or considerations when making an authorization decision.However, because this data is generally not shared amongst the nodes,each node must make its own independent authorization decision in theabsence of information from other nodes that could be used to expeditethe decision process or increase confidence in the decision. Typically,disapproval of a transaction by a node in the authorization network isan attempt to minimize exposure to transactions that may be fraudulentor otherwise not reimbursable. In making an authorization decision, eachnode may weigh the risk of the transaction against that of denying thesale to a good (i.e., honest or reliable) account or consumer.

In addition to authorization decisions made for a specific transactionbased on the data for that transaction, a node in the authorizationnetwork may decline to authorize a transaction because of the consumerdevice or account that initiated the transaction. For example, a node inthe authorization network may decline to authorize a transaction made bya consumer's computer or cell phone if that device or the account beingused for the transaction had not been previously involved with asufficient number of valid transactions, i.e., had not been properly“seasoned”. In a situation in which a consumer device or account beingused to initiate a transaction is not properly seasoned, a node of theauthorization network may send a challenge to the consumer, requiringthem to provide additional information prior to the node making anauthorization decision. A challenge consumes valuable computational andnetwork resources and may inconvenience users, thereby causing a delayin the authorization of a transaction and causing the consumer to beless likely to initiate transactions in the future. In addition, thissituation may prevent a merchant from accepting a transaction from acustomer that has been qualified as reliable and trustworthy by others,or one initiated by a device that is associated with a previously“seasoned” account.

In order to overcome these disadvantages of the present authorizationsystem, and to expedite authorization of a specific transaction or theseasoning of a consumer, account or consumer device, in someembodiments, the present invention introduces the concept of a “trustednode” as part of the authorization process. Here a trusted noderepresents a node or element of the transaction authorization networkthat is relied upon to vouch for the trustworthiness of a consumer,account, or consumer device. In such circumstances the priorauthorization of a transaction by a node in the authorization network isaccepted as sufficient to justify a different node's authorization ofthat transaction. Similarly, a trusted node's acceptance of a consumer,account, or consumer device as being of sufficient trustworthiness toqualify as being “seasoned” may be accepted by a different node asreason to classify that consumer, account, or consumer device asseasoned or otherwise expedite the authorization process for a currenttransaction and for subsequent transactions.

In some embodiments, a trusted node, might include, but not be limitedto, the following:

-   A physical merchant or web-site having established and reliable, or    sufficiently rigorous authorization/authentication procedures (e.g.,    Amazon, eBay, Paypal, a governmental entity, etc.);-   A web-site or other product or service provider having a continuing    relationship with a consumer, thereby reducing the risk in    conducting transactions with that consumer (a virus software that    supplies regular updates, etc.); or-   A service provider or other entity having an on-going relationship    with a consumer in which recurring payments are made (e.g., utility    payments, tax payments, etc.), with the assumption that a sufficient    authentication process has been used to verify the reliability of    the consumer.

Further, in some embodiments, the present invention includes a processfor gathering information about a consumer, consumer account, orconsumer device as part of an authorization message and processing thatdata (if needed, along with other consumer or account data) to identifyconsumers, accounts, or devices that may be considered sufficientlyreliable to be considered seasoned for purposes of transactionauthorization decisions being made by nodes of the authorizationnetwork. For example, by analyzing transaction and related datacollected from multiple merchants, a payment processing system that ispart of an authorization network may determine that a consumer, account,or consumer device is sufficiently reliable and trustworthy to qualifyas “seasoned”, or is considered seasoned by one or more nodes of thenetwork. This information may be provided to merchants that are part oflater transactions involving the same customer, account, or customerdevice to assist those merchants in making authorization decisions insituations where the merchant has insufficient experience with thecustomer, account, or customer device to qualify that entity asseasoned.

In general, embodiments of the invention include, but are not limitedto, being implemented as part of the following actions or transactiondata processing stages, with each such action or transaction dataprocessing stage capable of being implemented as an apparatus thatincludes a processor executing a set of instructions, a method, or asystem, among other embodiments:

-   Authorization of a transaction based on communication of data    through, or approval of the transaction by a trusted node;-   Seasoning of a consumer, account, or consumer device based on prior    seasoning of the same by a trusted node;-   Collection and processing of consumer device or account data as part    of transactions involving different merchants to enable the device    or account to be associated with a reliable consumer or consumers    and expedite the seasoning or authorization process;-   Providing collected and processed consumer, consumer account, or    consumer device data (or confirmation of consumer, account, or    device seasoning) provided by a first merchant or group of merchants    to a second merchant to assist the second merchant in deciding    whether to authorize a transaction or identify an account or device    as seasoned; and-   Detection of previous consumer, account, or device seasoning by a    merchant or merchants based on data contained in, or omitted from,    an authorization message.

These and other embodiments of the invention will now be described ingreater detail with reference to FIGS. 2-5. FIG. 2 is a flowchartillustrating a method 200 for expediting the authorization of atransaction by using a trusted node, in accordance with some embodimentsof the present invention.

FIG. 2 illustrates a group or set of steps or stages that represent atypical transaction authorization process. It is noted that the steps orstages shown in the figure may represent the entire authorizationprocess or only a portion of the overall process. Further, although theprocess described with reference to FIG. 2 will typically be performedby a payment processing network node or processor executing a set ofinstructions, it may also be performed by other nodes of theauthorization network. As shown in stage 202 of FIG. 2, transaction datais received at a node of the authorization network. The node typicallyinitiates its own authorization process based on the transaction dataand other data available to that node. However, in accordance with someembodiments of the present invention, the node determines if thetransaction had previously been authorized by a “trusted node” of theauthorization network. Prior authorization by a trusted node may bedetermined by any suitable means, including, but not limited to,determining if the data was communicated to the present node after beingprocessed by a trusted node, determining whether the transaction wasauthorized by a trusted node based on the setting of a flag or otherindicator in the data sent to the current node, etc. If the transactionwas previously authorized by a trusted node, then the transaction isconsidered to be authorized by the present node (stage 206) and theoverall authorization process is continued (stage 208). This may involvepassing an authorization message or other data to another node, such asthe merchant who initiated the transaction approval process. If thetransaction was not previously authorized by a trusted node, then thestandard authorization process for the present node is performed (stage210), after which the overall authorization process is continued (stage208). Note that in addition to, or instead of, making an authorizationdecision at the present node, the present node may pass informationregarding the trusted node's authorization decision to another node inthe authorization network to assist that node in making an authorizationdecision.

FIG. 3 is a flowchart illustrating a method 300 for expediting theseasoning of a consumer device or account by using a trusted node, inaccordance with some embodiments of the present invention. FIG. 3illustrates a group or set of steps or stages that may occur during atransaction authorization process. Although the process described withreference to FIG. 3 will typically be performed by a payment processingnetwork node, it may also be performed by other nodes of theauthorization network. As shown in stage 302 of FIG. 3, data concerninga consumer device or account is received at a node of the authorizationnetwork. Typically, the data will be received as part of a transactionauthorization message. The data may include device identification data(such as an IP address, cell phone identifier, device security code,etc.) or account related data (such as an account security code,consumer data, etc.). In accordance with some embodiments of the presentinvention, the node determines if the device or account had previouslybeen identified as seasoned (i.e., reliable and trustworthy) by a“trusted node” of the authorization network (stage 304). Prioridentification as seasoned by a trusted node may be determined by anysuitable means, including, but not limited to, determining if thetransaction, consumer, or account data provided to the present nodeincludes or fails to include specific data (such as a card verificationcode, etc.).

If the consumer device or account was identified as seasoned by atrusted node, then the device or account is considered to be seasoned bythe present node (stage 306) and the transaction is authorized (stage308). Being considered seasoned may involve setting a flag or otherwiserecording that the device or account is considered to be sufficientlyreliable for expedited authorization when involved in futuretransactions. The overall authorization process then continues (stage312), where this may involve additional authorization steps or passingan authorization message or other data to another node, such as themerchant who initiated the transaction approval process. If the deviceor consumer was not previously seasoned by a trusted node, then thestandard authorization process for the present node is performed (stage310), after which the overall authorization process is continued (stage312). Note that the present node may pass information regarding thetrusted node's seasoning determination to another node in theauthorization network to assist that node in making an authorizationdecision.

The embodiments of the present invention described with reference toFIGS. 2 and 3 have been directed to the use of a trusted node toexpedite the authorization of a transaction. This is based on thetrusted node previously authorizing the transaction or because theconsumer, account, or consumer device has been identified as seasonedand hence reliable by the trusted node based on prior experience withthe consumer, etc.

Another embodiment of the present invention relates to the use of a nodeof the authorization network to process authorization messages frommultiple transactions to obtain an overview of the reliability of aconsumer, account, or consumer device. This overview may provide anindication of the reliability or unreliability of a consumer, etc. thatwould not be apparent from the transactions involving a single merchantor consumer device. The multiple authorization messages may be processedto provide a measure, score, or other indicia of trustworthiness, withthis information being provided to another node of the authorizationnetwork to assist that node in making an authorization decision for aspecific transaction.

FIGS. 4a and 4b are flowcharts illustrating a method 400 for expeditingthe authorization of a transaction by a merchant by determining if aconsumer, account, or device has previously been identified as seasonedby another merchant or should be considered seasoned based on theprocessing of multiple authorization messages, in accordance with someembodiments of the present invention. In a typical embodiment, theinventive method 400 may include the steps or stages of one or both ofFIGS. 4a and 4 b, with the steps of FIG. 4a typically being performed bya Merchant and the steps of FIG. 4b typically being performed by aPayment Processing Network. Note that the process depicted in FIG. 4amay be executed multiple times by different merchants, therebygenerating multiple authorization messages that are provided to thepayment processing network for analysis and subsequent use as the basisfor providing seasoning or other transaction authorization data to amerchant as part of a subsequent transaction.

As depicted in FIG. 4 a, the inventive process or method includes amerchant constructing an authorization message that includes customer,account, or customer device specific data that is not normally includedwith the payment data (account number, transaction amount, etc) that ispart of a typical authorization message (stage 402). The added datamight include customer personal information such as zip code or age,and/or device data such as IP address, computer ID number, or cell phonenumber. This is data which is not generally used or sent to the PaymentProcessing Network as part of the transaction authorization process.

The authorization message is communicated, either directly orindirectly, to the payment processing network (stage 404). However,because the authorization message contains additional informationregarding a customer or customer device, the payment processing networkcan process authorization messages from one or more merchants to developa profile of the reliability of the customer or device. As shown in FIG.4 b, a payment processing network may receive authorization messagescontaining the additional data from one or more merchants (stage 406).The payment processing network then processes the one or more messagesto determine that a consumer, account, or consumer device is consideredseasoned and hence reliable by one or more merchants (stage 408).Similarly, the payment processing network can process one or moremessages to collect data and apply its own criteria to enable thepayment processor to identify a consumer, account, or consumer device assufficiently reliable, and hence that should be considered as seasonedfor the authorization of subsequent transactions (stage 408). Forexample, the payment processing network may determine that the sameaccount is associated with more than one consumer device (e.g.,different computing devices or a computing device and a cell phone) andthat since the account holder is reliable, transactions initiated usingthose devices should be eligible for expedited authorization.

Once a consumer, account, or consumer device has been identified asbeing considered seasoned by a merchant, or as one that should beconsidered reliable or seasoned based on evaluation by the paymentprocessing network, this information can be provided to a merchant aspart of the authorization process for a subsequent transaction (stage410). This information may also be used by the payment processing nodeitself as part of its own authorization process. Thus, the authorizationprocess for a subsequent transaction can be expedited by communicatinginformation regarding the trustworthiness of a consumer, account, orconsumer device to a merchant or other node of the authorizationnetwork. As a result, the information regarding the trustworthiness orprior acceptance as being seasoned can be used by other nodes of theauthorization network to expedite subsequent transactions. This isbecause once other nodes are informed of the acceptance of a consumer,account, or consumer device as being seasoned or as being a sufficientlyreliable party to transactions, the other nodes may also accept theconsumer, account, or consumer device as being seasoned. Note that the“seasoning” or reliability information from the Payment ProcessingNetwork that is provided to a merchant might be in the form of a score(good/bad, a numerical rating, rating in terms of values for multipleparameters, etc.) or other suitable measure. The merchant or other nodeof the authorization network may use this “seasoning” score along withother transaction or authorization data (e.g., a decision ofapproval/decline from the issuer) to decide whether to allow thetransaction to take place.

As described, in some embodiments, the present invention may be used toexpedite the authorization of a transaction or the identification of aconsumer, account or consumer device as being sufficiently reliable tobe considered seasoned by a merchant or other node of the authorizationnetwork. In some embodiments, the determination that a consumer, accountor consumer device is considered seasoned by a node of the authorizationnetwork can be based on whether certain data is either present or absentfrom an authorization message.

For example, if certain data that would typically be present as part ofan authorization message is absent, then a payment processor mightconclude that the source of the message had already identified theconsumer, account, or consumer device as being sufficiently reliable tobe considered seasoned. Similarly, if certain data is included in themessage (such as an indicator of acceptance of the consumer, account, orconsumer device as eligible for preferential treatment), then a paymentprocessor might conclude that the source of the message (e.g., amerchant) had already identified the consumer, account, or consumerdevice as being sufficiently reliable to be considered seasoned. Ineither case, once the payment processing network determines that aconsumer, account, or consumer device is accepted as seasoned by amerchant, then this information can be stored and used to expediteauthorization of transactions originating with other merchants.

For example, in each of the embodiments of the present inventiondescribed, the determination that a consumer, account, or consumerdevice should be accepted as seasoned may be recorded in a data store ofthe payment processing node or payment processor and used as the basisfor authorization decisions made by the payment processor for futuretransactions initiated by the consumer, account, or device. Further, asnoted, the determination of a consumer, account, or consumer device asbeing seasoned can be communicated to merchants involved in subsequenttransactions to assist them in making transaction authorizationdecisions.

The following description of use cases or possible scenarios in whichthe present invention might be used are intended as exemplary and notexhaustive, as other implementations and embodiments will be apparent tothose of skill in the art.

As a first use case or scenario, an E-commerce merchant has a web-sitethat includes a customer registration system that is used to collectpersonal information from first time customers. After the merchantcollects the information, the customer is assigned an ID number and PIN,which the customer uses in subsequent purchases so they do not to haveto re-enter the personal information each time they buy from thismerchant. The information collected by the merchant might include thecustomer billing and shipping address/zip code, home phone number,customer age or birth date, and credit card account number (plus, ifdesired, other merchant or product specific preferences). The merchantalso collects the Internet IP address and computer ID number, or cellphone ID number used by the customer in their communications with themerchant. The merchant stores the customer information in their customerdatabase. Although possibly requested from the customer to verify thecredit card account, the merchant would not store the card verificationcode as that information may not be stored by the merchant based on therules of the payment industry.

The first time the customer makes a purchase from the merchant, themerchant sends authorization data to the payment processing network,where the authorization data includes the card verification code. Forpurposes of this example, the transaction is authorized by the paymentprocessing network and the issuing bank. The merchant allows or deniesthe transaction based on the authorization from the issuing bank.

The merchant stores the data for this customer in their database. Thepayment processing network also recognizes that the entire authorizationdata record was sent for authorization by the merchant. No expected datawas absent, specifically data that cannot be stored such as the cardverification code. The merchant is able to settle this transaction andis paid as expected. Three months pass by and there is no chargeback forthis transaction. The merchant recognizes that this customer islegitimate, pays their bills, and does not charge back for merchandiseshipped to the registered address. Based on this, the merchantidentifies the customer as reliable (i.e., seasoned) and places thiscustomer into a preferred status within the merchant customer database.This indicates to the merchant that the next transaction involving thisregistered customer and using the same registration information shouldbe accepted as a valid and acceptable transaction.

A period of time passes and the same customer returns to the merchant'swebsite and registers with their user ID and PIN. The customer purchasesmerchandise using the same data that was previously used as part of theregistration process, including credit card and shipping address. Themerchant recognizes the “seasoned” or preferred status of the customerand does not ask for the card verification code. The new transaction isauthorized by the issuer without the presence of the card verificationcode data in the authorization message to the payment processingnetwork.

The payment processing network recognizes that the new transaction wasauthorized without the card verification code being included in theauthorization process. The payment processing network infers that thiscustomer has already been identified as reliable or “seasoned” by thismerchant. The payment processing network stores this information intheir account database for this account number. The payment processingnetwork also stores the other customer, account, or customer deviceinformation provided in the transaction messages. The payment processingnetwork then identifies the customer as reliable or “seasoned” in theiraccount database.

A different merchant now requests authorization from the paymentprocessing network for a transaction involving the same customer. Thismerchant has not dealt with the customer before, and the customer doesnot register with this merchant. For example, this may be a one-timetransaction with this merchant by the customer. The transactionauthorization message includes data that matches the data correspondingto the customer identified as seasoned in the payment processing networkaccount database. Based on this, the payment processing network scoresthis as a ‘good’ or “seasoned” account, and the merchant uses thisinformation to decide whether to allow or deny the transaction from anon-registered customer. Thus, in this example the new merchant gainsthe benefit of a “seasoning” decision performed in the past by adifferent merchant.

In another scenario, the same customer returns to the first merchant'sweb-site and registers by providing their previously established user IDand PIN. However for this transaction, the customer changes the billingand shipping address after they register (e.g., because they have movedsince the earlier transaction). The transaction is processed through theauthorization network to the payment processing network as usual,including the billing and shipping address data. The payment processingnetwork recognizes that the address has changed, and notes this fact.The transaction is approved by the issuer, and the merchant accepts andsettles this transaction. The payment processing network recognizes thefact that the merchant had accepted this transaction from the newaddress of this customer. The data processing network either replacesthe address for this customer or requests an address update from themerchant or the issuer. This becomes an early warning that customer datahas changed for a given account.

In some embodiments, the inventive methods, processes or operations forexpediting the authorization of a payment transaction may be wholly orpartially implemented in the form of a set of instructions executed by acentral processing unit (CPU) or microprocessor. The CPU ormicroprocessor may be incorporated in an apparatus, server or othercomputing device operated by, or in communication with, a node of theauthorization network. As an example, FIG. 5 is a block diagram ofelements that may be present in a computer device or system configuredto execute a method or process for expediting the authorization of apayment transaction in accordance with some embodiments of theinvention. The subsystems shown in FIG. 5 are interconnected via asystem bus 500. Additional subsystems such as a printer 510, a keyboard520, a fixed disk 530, a monitor 540, which is coupled to a displayadapter 550, and others are shown. Peripherals and input/output (I/O)devices, which couple to an I/O controller 560, can be connected to thecomputer system by any number of means known in the art, such as aserial port 570. For example, the serial port 570 or an externalinterface 580 can be used to connect the computer apparatus to a widearea network such as the Internet, a mouse input device, or a scanner.The interconnection via the system bus 500 allows a central processor590 to communicate with each subsystem and to control the execution ofinstructions that may be stored in a system memory 595 or the fixed disk530, as well as the exchange of information between subsystems. Thesystem memory 595 and/or the fixed disk 530 may embody a computerreadable medium.

In accordance with embodiments of the present invention, there have beendescribed a system, apparatus, and methods for expediting theauthorization of a payment transaction. In some embodiments, this isaccomplished by inferring the trustworthiness of a consumer, account, orconsumer device used in the transaction because that consumer, account,or consumer device was determined to be trustworthy by another node ofthe authorization network. In other embodiments, this is accomplished bycollecting information about a consumer device as part of transactionsinitiated with multiple merchants and then processing that informationto identify the device as trustworthy for a transaction involving adifferent merchant.

It should be understood that the present invention as described abovecan be implemented in the form of control logic using computer softwarein a modular or integrated manner. Based on the disclosure and teachingsprovided herein, a person of ordinary skill in the art will know andappreciate other ways and/or methods to implement the present inventionusing hardware and a combination of hardware and software

Any of the software components or functions described in thisapplication, may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example,Java, C++ or Perl using, for example, conventional or object-orientedtechniques. The software code may be stored as a series of instructions,or commands on a computer readable medium, such as a random accessmemory (RAM), a read only memory (ROM), a magnetic medium such as ahard-drive or a floppy disk, or an optical medium such as a CD-ROM. Anysuch computer readable medium may reside on or within a singlecomputational apparatus, and may be present on or within differentcomputational apparatuses within a system or network.

While certain exemplary embodiments have been described in detail andshown in the accompanying drawings, it is to be understood that suchembodiments are merely illustrative of and not intended to berestrictive of the broad invention, and that this invention is not to belimited to the specific arrangements and constructions shown anddescribed, since various other modifications may occur to those withordinary skill in the art.

As used herein, the use of “a,” “an” or “the” is intended to mean “atleast one,” unless specifically indicated to the contrary.

what is claimed is:
 1. A method of processing transactions conducted bya consumer, comprising: receiving an authorization request message for atransaction at a computer in a transaction authorization network from aterminal in a node comprising a merchant processing system; identifying,by the computer, a trusted node indicator in the authorization requestmessage; determining, by the computer based on the trusted nodeindicator in the authorization request message, that the node thattransmitted the authorization request message is a trusted node; priorto authorizing the transaction by the computer, by-passing performing aconsumer authentication by the computer based, at least in part, on thetrusted node indicator, wherein the computer relies upon consumerauthentication assertion of the trusted node; updating, by the computer,a record associated with the consumer at a database to indicate that theconsumer is an authenticated consumer based on the consumerauthentication performed by the node; authorizing the transaction at thecomputer without requiring, from the consumer, authentication data fromthe consumer; and sending, from the computer to the node, anauthorization response message indicating that the transaction isauthorized.
 2. The method of claim 1, wherein the computer providesauthorization, and clearing and settlement services.
 3. The method ofclaim 1, further comprising: before receiving the authorization requestmessage, receiving an indication from the node that a prior consumerassociated with a prior transaction is seasoned; and storing priorconsumer information associated with the prior consumer in the database,wherein authorizing the transaction at the computer uses the priorconsumer information.
 4. The method of claim 3, wherein the transactionis authorized if the consumer is same as the prior consumer.
 5. Themethod of claim 4, wherein the prior consumer information comprises aprior shipping address, wherein consumer information associated with theconsumer comprises a first shipping address, wherein the transaction isauthorized if the first shipping address is same as the prior shippingaddress.
 6. The method of claim 4, wherein the prior transaction isconducted at a prior merchant, wherein the transaction is conducted at afirst merchant, wherein the prior merchant and the first merchant aredifferent.
 7. The method of claim 4, wherein the consumer is same as theprior consumer, wherein the prior transaction and the transaction areconducted at a first merchant, wherein the prior consumer informationcomprises a prior shipping address, wherein consumer informationassociated with the transaction comprises a first shipping addressdifferent from the prior shipping address, and wherein the consumerinformation stored for the consumer is updated to include the firstshipping address.
 8. The method of claim 3, wherein the indication fromthe node is included in a prior authorization request message receivedby the computer.
 9. The method of claim 1, wherein the consumer waspreviously authenticated by the merchant processing system using a userID and a PIN associated with the consumer, and wherein the nodeauthorizes the consumer upon recognizing the user ID and the PIN. 10.The method of claim 1, wherein the computer in the transactionauthorization network is a transaction processing network computer or anissuer computer.
 11. A method of processing a transaction conducted by aconsumer, comprising: receiving, at a computer in a transactionauthorization network, an authorization request message from a terminalof a merchant for the transaction between the consumer and the merchant;identifying, by the computer, a seasoned consumer indicator in theauthorization request message, the seasoned consumer indicatorindicating that the consumer is deemed trustworthy by an entity in thetransaction authorization network; prior to authorizing the transactionby the computer, by-passing performing a consumer authentication by thecomputer based, at least in part, on the seasoned consumer indicator;authorizing the transaction at the computer without requiring, from theconsumer, authentication data from the consumer; and sending, from thecomputer to the merchant, an authorization response message indicatingthat the transaction is authorized.
 12. The method of claim 11, whereinthe computer in the transaction authorization network is a transactionprocessing network computer, the method further comprising: prior toreceiving the authorization request message at the computer: analyzing,by the computer, past transaction data associated with the consumer;determining, by the computer, that the consumer is trustworthy to beconsidered a seasoned consumer based on the past transaction data; andtransmitting, by the computer to the merchant, the seasoned consumerindicator associated with the consumer.
 13. The method of claim 12,further comprising, prior to analyzing: collecting, by the computer, thepast transaction data from a plurality of merchants.
 14. The method ofclaim 12, wherein determining that the consumer is trustworthy to beconsidered a seasoned consumer further comprises: processing, by thecomputer, authorization messages associated with past transactions todetermine a measure of trustworthiness of the consumer; and if themeasure of trustworthiness exceeds a predetermined threshold, thenidentifying, by the computer, the consumer as the seasoned consumer. 15.The method of claim 11, further comprising: prior to receiving theauthorization request message at the computer: determining, by thecomputer, that the consumer is trustworthy to be considered a seasonedconsumer based on a trusted node in the transaction authorizationnetwork indicating a seasoned status for the consumer, wherein thetrusted node is relied upon to vouch for trustworthiness of theconsumer; and transmitting, by the computer to the merchant, theseasoned consumer indicator associated with the consumer.
 16. The methodof claim 11, wherein the computer in the transaction authorizationnetwork is a transaction processing network computer or an issuercomputer.
 17. A method of processing transactions conducted by aconsumer, comprising: receiving an authorization request message for atransaction at a computer in a transaction authorization network from aterminal in a node comprising a merchant processing system, wherein thecomputer is configured to perform a transaction authorization operationfor the transaction; determining, by the computer, that theauthorization request message was transmitted by the node and that theconsumer was previously authenticated by the node; analyzing, by thecomputer, the authorization request message to determine whether theauthorization request message includes a trusted node indicator, if theauthorization request message includes the trusted node indicator, thenthe transaction authorization operation performed by the computerincludes: authorizing the transaction at the computer without requiring,from the consumer, authentication data that would otherwise be requestedin transactions not processed by a trusted node, wherein the transactionis authorized based on authentication assertion of the trusted node; ifthe authorization request message does not include the trusted nodeindicator, then the transaction authorization operation performed by thecomputer includes: discarding authentication previously performed by thenode; sending a challenge message to a consumer device of the consumerrequiring the authentication data from the consumer to complete thetransaction; receiving the authentication data of the consumer from theconsumer device; authorizing the transaction in response to receivingthe authentication data of the consumer; and sending, from the computerto the node, an authorization response message indicating that thetransaction is authorized.
 18. The method of claim 17, wherein thecomputer in the transaction authorization network is a transactionprocessing network computer or an issuer computer.
 19. The method ofclaim 17, wherein the trusted node indicator indicates that the nodethat transmitted the authorization request message is the trusted node.